Korean Job Discussion Forums

zombiedog · Joined: 03 Oct 2011

I finished my contract and renewed, but my employer has been known to be up to 5 months late paying severance. If renewing with an employer, is there a time by which the hagwon must pay us our severances? What about airfare?

Thanks

TheUrbanMyth · Joined: 28 Jan 2003 Location: Retired

Legally they do not have to pay you your severance until 14 days after the end of your second contract.

YTMND · Joined: 16 Jan 2012 Location: You're the man now dog!!

big_fella1 · Joined: 08 Dec 2005

ontheway · Posted: Wed Apr 10, 2013 7:24 am Post subject:

It used to be that workers in Korea could request a severance payout even when staying with the same job. Many Koreans used this as a backup savings plan for their kids' educations, starting businesses, buying property or covering accumulated credit card bills and other household debts. And, of course, E2 teachers would wisely get their severace payment every year, even when renewing.

However, the purpose of severance as stated by the government was to save the money for retirement, so the policy was changed. (The people making withdrawals were smarter than the politicians, but government has little to do with what is good for the people.) Now, (since 2012?) a worker cannot request and a business cannot pay severance until the worker has stopped working.

Several Koreans that I know made hurried requests to withdraw their accumulated severance amounts (many years' worth) just ahead of the date the new rules went into effect.